People apply for personal loans for a lot of reasons like funding their education or buying something that they need. This type of loan provides a cash advance to borrowers if they are short on cash. Borrowers have the option to repay the loan in six, twelve, eighteen, twenty-four or even thirty-six months.

A loan by any perspective is designed to render significant monetary help to the needy customers. This goes same with the personal finance as well. The loan is predominantly designed to render awesome help on financial ground. But, just as all the loans have their terms and conditions; this one also has many terms including repayment on timely manner. You will be supposed to pay off the loan on time so that you can fend off charges of any sort in this context.

The main advantage of applying for a personal loan is because a personal loan is an unsecured loan and that the bank doesn’t require any collateral. Banks take on a higher risk of losing money which is why the policies for this type of loan are more stringent.

To avail personal finance from a bank, you need to comply with its cited terms and conditions. You will be asked to submit all required documents that can prove your credibility as a borrower for the loan. However, there is very less documentation and so you don't have experience time consuming procedures of bank to approve you finance. You don't even have to bother for explaining anything to convince your lender that the loan being taken will be used in particular purpose or needs. Clarification is not required.

However, you need to convince your lender about your repayment capacity. Since this type of finance is risky, especially when you are reluctant to pledge your property, the bank usually charges huge rate of interest believing it could help it offset the risk in the event of borrower's inability to repay. This should be taken into consideration.

Lenders base their decisions on your credit history if you are applying for an unsecured loan. If you have a good credit history and you can convince your lender that you will not fail from your responsibilities then your loan will have a higher chance of being approved. In spite of the very high percentage of rejection this type of loan still seems to be the most enticing form of bank loan in the Philippines due to its leniency.

Don't let limited funds limit you from experiencing life. When a personal need arises and you don't have funds for it, apply for a personal loan to help you with your immediate financial concern.

Personal loan is one of the most useful and reliable financial options for everyone who wants to avail short term loan to answer different needs. With the loan, you will be able to buy a car, go for holidaying with family, sort out other needs you are unable to do because of lack of proper finance in hands. The loan will help you make your needs rightly. There are banks and lending institutions which will help you sort out your needs in this context.

Taking out a personal loan and paying it back on time is an excellent way to prove to creditors that you can be trusted with your finances. Make your payments on time and you will slowly be able to build up your creditworthiness that can help you gain the favour of even more lenders.

Do not spend the money frivolously! Some people proceed to splurge their personal loan on food, clothes, gadgets, gifts and entertainment as soon as they lay their hands on it. This is a sure-fire sign that you will get yourself into more financial troubles. A personal loan should strictly be used to solve your financial problems or to achieve the goals you have set for yourself.

The best way to employ your personal loan is to use it to consolidate your loans. You may have several credit cards each with a balance, unpaid utility bills and car loans. If the loan amount is large enough to cover all the loans, then pay them off. Consolidating all your loans into a single loan saves you a lot of time and headache. It may also lower the interest rate. With only one loan to pay back, you will find the load to be lighter and easier to handle.

Figure out how your repayment plan for your personal loan will fit into your existing budget. Decide how long you would like your repayment term to be and calculate how much you will need to trim your budget or put aside each month in order to meet the monthly payments. Budgeting for your personal loan repayment ahead of time will make sure you can pay it off in a timely manner according to the agreed terms.

Once you have decided that you need a personal loan to solve your financial problems, plan where you will use the loan. Give priority to paying off your existing loans, including credit cards, car loans and unpaid utility bills. Carefully calculate the amount you will need and do not apply for more than you think you will be able to comfortably pay back; otherwise you will just spend it on things that you do not need.

Taking out a personal loan has a great advantage over purchases made using a Credit Card.

Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous 'extra charges' - check your credit card statement and look at how much is the 'extra charges' and the actual payment per month.

With a personal loan, you are receiving cash and you are in complete control of how you spend it. While it’s wise to formulate a plan ahead of time, you’re still not restricted as to where you can spend your money like with some credit cards. Some people even use personal loans to help make a large purchase. Let’s say you want to buy an expensive item but don’t have the immediate funds. With a personal loan, you can get what you need and spread out the payments so it’s affordable for you.

One of the benefits of getting a personal loan is speed. Once you meet the lender’s requirements, you usually don’t have to wait very long to get the money you need. Personal loans are processed quickly, so you can have your money and start using it.

The length of time between when you apply for a personal loan and when you get the funds can vary widely but greatly depends on just one factor - when are you going to produce and submit the required documents?

Your documents will tell who you are and your financial capacity/background. That will be the basis for the loan application approval.

It’s very easy to find information about personal loans that warn you to steer clear of them at all costs because of the interest rate or you’ll sink too far into debt etc, etc, etc...

Taking out a personal loan can be quite helpful in some situations. Here are some benefits of getting a personal loan.

No Collateral Required

For anyone who isn’t too keen on putting up an asset as security against a loan, personal loans are a good choice. With loans like home equity loans or car title loans, you are putting up your property or assets as collateral for the loan - failure to pay means you lose your asset, simple.

And while these kinds of loan products work well for some people, others can feel anxiety knowing what they stand to lose if things go awry. For personal loans, you just have to meet the requirements set out by the lender, and the money is yours.

Personal loan is all about 'you'. If you are a first-timer, you just have to prove you have the capacity to repay. Keep a good record and you can apply for your next loan faster.

Speed

Once you meet the lender’s requirements, you usually don’t have to wait very long to get the money you need. Personal loans are processed quickly, so you can have your money and start using it.

Control

With a personal loan, you are receiving cash and you are in complete control of how you spend it. While it’s wise to formulate a plan ahead of time, you’re still not restricted as to where you can spend your money like with some credit cards. Some people even use personal loans to help make a large purchase. Let’s say you want to buy an expensive item but don’t have the immediate funds. With a personal loan, you can get what you need and spread out the payments so it’s affordable for you.

Debt Consolidation

While it’s true that taking a personal loan is actually adding to your debt, you can still use it to reduce your overall debt faster. If you have other debts and choose to consolidate with the help of a personal loan, it will simplify the whole process for you. Creditors will stop calling you, you’ll be paying less interest and you’ll only be making one or two payments per month.

When you need to borrow money you have a number of option: the bank, cooperative, credit card, home equity loan and even from a "bumbay" which either have a fixed or variable rate.

One option you may be considering is a personal loan, which can be used in a variety of different ways - to help with a small business, finance a home renovation, consolidate debt or even pay for a wedding or vacation. So what makes a personal loan different?

Personal loan carry fixed interest rates. That makes them different than, say, a home equity line of credit which usually carries a variable interest rate that can change when interest rates in the economy change. Variable-rate loans may look more attractive at first since their "initial" rates are often low. But the rate (and payment) may rise later, and may make the loan more expensive (and risky) over time.

You must pay them back in a certain amount of time. Most personal loans carry a fixed repayment period of one to five years. During that time you make fixed monthly payments. That makes them different than credit cards, which allow you to make a minimum payment that will barely make a dent in your balance. If you prefer the certainty of knowing when your debt will be paid off, a personal loan is the preferred choice.

Personal loan give entrepreneurs a chance to prove themselves. It's become more difficult over the past few years to borrow to start or jumpstart a young or small business. Brand new businesses, for example, aren't likely to find a bank that wants to give them a loan just because they have a great idea for a business. Banks often want to see sales and revenue figures, which newer businesses aren't likely to have. That's why some small businesses are turning to personal loans, which they obtain on the strength of their personal credit and finances, rather than that of the business.

Perfect for home improvement. A few years ago, if you wanted to build a deck or remodel your kitchen, your bank was probably more than happy to give you a home equity loan to fund your project. But now, between stricter mortgage loan requirements and home values down in many parts of the country, getting a home equity loan may feel like more trouble than it's worth. That's why many borrowers are turning to personal loans to fund home improvement projects. And unlike home equity loans, which often require interest-only payments for ten years before the borrower has to start repaying the principal, with a personal loan you'll know your project is paid for in a few years and you're ready to start a new one!

Personal Loans (also called Signature Loans, Character Loan, etc) is a type of unsecured loan that are often used by borrowers for small purchases such as computers, home improvements, vacations or unexpected expenses.

An unsecured loan does not require a collateral and that means the lender relies on your promise to pay it back. They're taking a bigger risk than with a secured loan, so that is why interest rates for unsecured loans tend to be a little bit higher.

You normally have set payments over an agreed period and penalties may apply if you want to repay the loan early. Unsecured loans are often more expensive and less flexible than secured loans, but is suitable if you want a short-term loan (one to five years).

From 6 months, 12 months, 36 months and up to 48 months depending on the bank.

Basic Qualification:- Must be 21 to 65 years old (end of loan term should be before your 65th birthday).- Must have good credit standing. No historical defaults.- If self-employed, business should be operational for at least 2 years.

Requirements for Employed/Salaried Individuals:- Checking Account- Latest Certificate of Employment (should not be more than 30 days old). Basic monthly salary, position and length of service must be indicated.- 2 months latest payslips- Latest ITR- 2 Government issued ID (Passport, SSS, PRC, Driver's License, Voter's ID)- 1 Company issued ID (front and back) with 3 specimen signatures beside the front copy of the ID- Copy of recent Credit Card statement, if any